There is a considerable amount of action that needs to be taken with
regards to operation management in banks. Financial institutions are
required to meet new and stricter government regulatory requirements as
well as their own internal regulations. Banks need to adjust their
business models in no time. The recent financial crisis has forced
bankers to reconsider their strategy. More banks are now adopting
improved information and risk management systems that meet the
regulatory and statutory requirements. It is crucial to embed new modes
of operations into the banking culture to achieve significant
improvements. This will require banks to adopt third-party banking
software in the coming years.

According to the report, one of the major drivers is the need for
standardization. There has been a change in the way banks operated and
an increase in the complexity and rigidity in banking operations, which
has necessitated the use of banking software. However, banks need
advanced banking software that can help them meet all financial needs in
a flexible manner.

Further, the report states that one of the chief challenges is the high
cost involved in switching to a new system. Bankers often refer the
migration from legacy systems to third-party banking software as a
critical process as it is a fearsome task especially for large banks.